U.S. crude CLc1 prices vaulted 10.26 percent to settle at $42.56 a barrel on a global rally in equity markets and an unexpected fall in U.S. crude inventories. [O/R]

“That’s really given the energy stocks a breather. All of them are having a really good day,” said John Kinsey, portfolio manager at Caldwell Securities. “We’ve had two really good days here now, and I think that means maybe the panic has subsided, at least for now.”

All 10 of the index’s main groups were on higher ground, with the three most influential sectors, energy, materials and financials climbing 6.6, 4.5 and 2.2 percent respectively. Those groups make up roughly two-thirds of the index’s weight.

Kevin Headland, director at Manulife Asset Management’s Portfolio Advisory Group, cautioned that the impact of cheap energy prices was starting to hit banks, noting that it will become tougher for Canadian banks to maintain their margins.

He also warned of tougher days ahead in general for the TSX.

“Demand for commodities is definitely not improving. The slowing growth in China, the slowing growth around the world, I think that’s really going to keep a lid on the TSX for the next little while,” he said.